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KUALA LUMPUR, 25 JULY 2026 —

KUALA LUMPUR – Germany’s real (price-adjusted) construction orders in the main construction sector rose 3.3% month-on-month in May 2026, seasonally and calendar-adjusted, the Federal Statistical Office (Destatis) reported. Orders in civil engineering fell 3.1% while building construction rose 8.7%. Over the three-month period from March to May 2026, orders increased 2.6% compared with the previous three months (building construction: +5.3%; civil engineering: +0.3%).

Malaysia’s exposure to German construction sector limited Analysts said the impact on Malaysian firms with direct ties to Germany’s construction industry would likely be minimal, given the sector’s small share of Malaysia’s export market. No immediate market reaction was reported in Malaysian equities or the ringgit following the data release.

Year-on-year growth of 3.5% recorded Compared with May 2025, real construction orders in May 2026 were up 3.5% on a calendar-adjusted basis. Building construction orders rose 6.7% while civil engineering orders increased 1.2%. Nominal (non-price-adjusted) orders were 4.5% higher than a year earlier. Real construction turnover in May 2026 fell 2.1% year-on-year, while nominal turnover rose 2.4% to €10.1 billion. Employment in the sector grew 1.5% to about 545,000 workers.

Outlook remains cautious amid mixed signals Destatis noted that short-term economic trends are assessed using seasonally and calendar-adjusted month-on-month or quarter-on-quarter comparisons, while year-on-year comparisons provide longer-term context. The data covers companies with 20 or more employees engaged in structural steel erection, civil engineering, or specialized construction activities.